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The recovery
rate of government loans to departments and institutions is very low according
to the Accountant General’s Report. There was no recovery in the housing, crop
husbandry, animal husbandry, dairy development, fisheries, industries and
minerals sectors for the five years between April 1, 1993 and April 1, 1998.
Outstanding loans at the beginning of 1997 totalled Rs 8.64 crore, of which only
Rs 72.5 lakh has been recovered. No interest has been paid on outstanding loans.
The
enforcement of loan and interest recovery will, apart from raising resources,
send a strong signal to borrowers that they cannot continue to misuse the loans
facility. It will also improve monitoring and evaluation in the sanctioning of
loans. |